Title
Approving a wholesale wastewater agreement with Texas Water Utilities for wholesale wastewater conveyance and treatment services, and authorizing the City Manager to execute the same.
Summary
The City currently has a 20-year agreement with Texas Water Utilities to provide wastewater service to the Pflugerville Heights and Pfairway Office Park that is located on the west side of Schultz Lane and north of Pflugerville Parkway. This agreement charged a flat rate for wastewater service and also required that the City reimburse Texas Water Utilities (Windermere) based upon their retail rates. The City is currently the responsible billing entity for this section of the City even though Windermere currently has the wastewater Certificate of Convenience and Necessity (CCN) and we charge retail rates based upon Windermere tariff agreement for providing wastewater service. This agreement has significantly under-collected revenue based upon the City’s historical rate structure and due to the reimbursement owed to Windermere per the existing agreement.
As this agreement is expiring, the City approached Texas Water Utilities to determine what route they would like to take given the area is within their wastewater CCN and they would have the option to serve the properties if they have sufficient infrastructure to convey flows to their wastewater system. The City also provided Texas Water Utilities the option for a short-term agreement for wholesale wastewater service to replace the existing complicated agreement. As Texas Water Utilities does not have any nearby infrastructure, they opted for a wholesale wastewater agreement with the City for a 10-year term where the City bills Texas Water Utilities instead of the customers directly. The City would bill based upon our approved wholesale wastewater rates and Texas Water Utilities would bill the retail portion of the customer’s wastewater bill. The City would no longer be sending a wastewater bill to these resi...
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